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<p>[QUOTE=&quot;Cloudsweeper99, post: 649378, member: 3011&quot;]That&#039;s where the trouble starts.&nbsp; In the case of many commodities, a person has to demonstrate that they actually have the commodity for delivery to short it.&nbsp; If they don&#039;t own the commodity, the volume of contracts they are permitted to trade is limited.&nbsp; In the case of silver [and I think gold], a speculator can short an unlimited number of contracts without owning the commodity for delivery.&nbsp; This greatly distorts the price discovery process.&nbsp; The actual number of futures contracts is greatly in excess of the amount of silver in the Comex that is registered for delivery.&nbsp; If you or I wanted to short huge amounts of silver through the futures market, we obviously could not because no bank or broker would extend the credit and take the risk.&nbsp; But if JP Morgan Chase wants to do it, they have no limit under current law.&nbsp; Thankfully, this seems like it might be about to change.&nbsp; This should result in higher silver prices.[/QUOTE]</p><p><br /></p>

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